Friday, August 27, 2010

ADJUSTING THE SYSTEM


Here's what you can do if you have a good system. You can modified for into multiple modes.

My regular trading based on breakout, showed by the arrow. My SL no bigger than ten ticks, sometime less. Now here's the example of modifying the system.
- On volatile market, means big volume, I might want to be more aggresive. So I entered on No.1 Signal immediately.
- On quiet or choppy market I maight want to enter the No.2 Signal, neglecting the No.1 Signal.
- On a very low risk mode I might enter on the No.3 Signal, not caring both of the previous signal.

The modification keeo going for example: entering 5 ticks better price or even 10 ticks better price for lowering stopped out risk.
Or after third failed, you might want double the position since the odds are getting higher and higher after failure. But I didn't really want to do it.

Sometimes I did the 10 ticks better price and if the price moved and breakout the regular setup, I adding size, while keeping the risk at the regular size.

Entering on better price had lot of chance to not get filled at all, but there's always price for everything we do.

-- Some people hate to miss opportunity but okay being stopped out a lot.
-- Others hate to lose but not too worry missing the opportunity.

If we can trading based on what we comfortable, I believe we can become a better trader. :)

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